Grayscale’s Bitcoin ETF Records Minimal Outflows

Grayscale’s Bitcoin Trust (GBTC) has experienced a significant decrease in withdrawals reaching an all-time low recently.

Grayscale’s Bitcoin Trust (GBTC) has seen withdrawals reach an all-time low in the past few days, indicating a slowdown in withdrawal volumes. BitMEX Research data shows that on February 23, GBTC saw $44.2 million in withdrawals, the lowest day volume since the cryptocurrency’s conversion from an over-the-counter (OTC) product to an exchange-traded fund (ETF) on January 11.

GBTC saw withdrawals of $5.64 billion by the end of January with a noteworthy $640 million leaving on January 22 alone. Remittances have decreased in February, totaling $1.8 billion so far. Investors have withdrawn a total of $7.4 billion from GBTC since its founding.

On the other hand, since its introduction Fidelity’s FBTC has raised over $4.7 billion in funds while BlackRock’s IBIT has received over $6.6 billion in investments. With $1.4 billion in inflows over the same period, ARK 21Shares holds the third position. Investors expected GBTC to make a big exit.

Grayscale’s Bitcoin Trust (GBTC) withdrawals

After the Securities and Exchange Commission approved the spot Bitcoin ETF on January 10, holders of GBTC were able to convert and redeem their shares. In the past, investors needed to sell their shares on the secondary market in order to liquidate their holdings.

Analysts claim that in recent weeks, investors have also moved to lower-fee Bitcoin ETFs and rebalanced their holdings. Some issuers charge as little as 0.19% annually in management fees, whereas GBTC charges 1.5%. There might be one more obstacle for Grayscale’s Bitcoin fund.

A judge recently authorized the bankrupt cryptocurrency company Genesis Global Holdco to liquidate $1.3 billion worth of GBTC shares in order to pay back investors. However, Grayscale’s charge schedule might make up for the enormous outflows. ETF Store president Nate Geraci said on X (previously Twitter) that they can have assets chopped by like 90% and still make more than all of the other issuers combined.